Problem 9
Voters in your city must decide whether to raise revenue by increasing the rate of property tax for owners of homes and businesses or by placing a new tax on motel and hotel room rates and car rentals. Which tax are voters more likely to choose? Give reasons for your answer.
Problem 10
Demand for insulin is highly inelastic. Would the government be likely to use a tax on insulin as a tax incentive? Why or why not?
